(New York) Oil prices retreated on Friday after a week of no clear direction as investors remained torn between bullish data, demand risk still hanging over Omicron and volatility in the equity market.
The price of a barrel of North Sea Brent for February delivery fell 1.99% or $ 1.50 to $ 73.52.
In New York, a barrel of West Texas Intermediate (WTI) for the month of January fell 2.10% or $ 1.52 to $ 70.86.
The two benchmark crude prices ended Thursday’s session on a similar percentage rise.
“The market was heavily influenced by the stock market today as the three witches session (which sees options contracts expire) put pressure on prices,” said Phil Flynn of Price Futures Group.
Opposing forces are at work, on the one hand the fear that the new variant of COVID-19 will hamper demand for black gold, on the other encouraging signs such as the significant drop in crude stocks in the States. United last week, shared Wednesday by the US Energy Information Agency (EIA).
As a result, “the oil markets are looking for an equilibrium price until the situation changes convincingly one way or the other,” continues Mr. Halley.
“The shadow of the Omicron variant hangs over the market because we hear about new potential containments, which is weighing on the morale of operators,” added Phil Flynn.
Investors are awaiting the next meeting of the Organization of the Petroleum Exporting Countries (OPEC) and their allies via the OPEC + agreement scheduled for January 4.
But rumors in the markets evoke a possible meeting of the cartel of producers “around Christmas to react to the threat of Omicron”, the Price Futures Group analyst told AFP.